06-05-2015, 11:36 PM
Greece should take the deal. The country’s creditors have tabled what has all the appearances of a final offer. Alexis Tsipras’s government should accept it. Athens will not achieve better terms and the alternative of default and likely exit from the euro would be worse for the Greek people.
An offer that Greece should not refuse - FT.com
Targets for the size of the primary surplus a year or two hence can be changed. What matters are the circumstances. The missing ingredient since Syriza’s election victory has been any confidence on the side of creditors that greater fiscal leeway would be accompanied by a serious commitment to overhaul the country’s governance. Mr Tsipras promised that, as an outsider, he would sweep away the corruption and cosy cartels. The impression he has given since is that one set of clients is being replaced by another. If Athens wants other leaders to take seriously its view that austerity is counterproductive, the only way to do it is to embark on the political and economic reforms needed to underpin a return to growth.
An offer that Greece should not refuse - FT.com
Greek stocks rose on Wednesday after reports of a compromise plan from its international creditors -- although Greece insisted it had not formally received any new proposals. The European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) on Tuesday drafted the broad lines of an agreement to put to the Greek government, according to Reuters, in a bid to resolve months of tense negotiations over Greek reforms and debt.
Greek stocks up as compromise details emerge
Total combined public and private debt is more than 370pc of GDP, the highest in Europe. This leaves the country badly exposed to the effects of debt-deflation and stagnant nominal GDP. William Buiter, Citigroup’s chief economist, said Portugal has many of the same economic "pathologies" as Greece, and is likely to be first in line for contagion if the sanctity of monetary union is violated by the ejection of Greece.
Europe faces second revolt as Portugal's ascendant Socialists spurn austerity - Telegraph